Pacific Gas and Electric Company has agreed to pay 100 million dollars to resolve a long-running shareholder lawsuit tied to the catastrophic 2017 and 2018 California wildfires, marking another major legal milestone for the utility as it continues to address the fallout from one of the darkest periods in its history.
Pacific Gas and Electric Company, commonly known as PG and E, disclosed that it has reached a proposed settlement with investors who alleged the company misled shareholders about wildfire risks and the condition of its electrical infrastructure prior to several devastating fires. The agreement was filed in federal court in Northern California and remains subject to judicial approval.
Shareholder Allegations and Core Claims
The lawsuit was brought by a group of PG and E shareholders who claimed the utility failed to adequately disclose safety deficiencies, aging power equipment, and wildfire-related risks to investors. According to the complaint, these omissions artificially inflated PG and E’s stock price before a series of deadly fires caused massive financial and reputational damage to the company.
Investors argued that PG and E publicly portrayed itself as compliant with safety regulations and proactive in wildfire prevention, while internally struggling with vegetation management, equipment maintenance, and risk mitigation. When the fires occurred, the company’s share price fell sharply, allegedly causing substantial losses to shareholders.
PG and E has denied all allegations of wrongdoing, stating that it believes its
public disclosures were appropriate and legally compliant. The utility emphasized that the settlement is intended to
avoid the cost and uncertainty of continued litigation rather than an admission of liability.
Wildfires at the Center of the Case
The shareholder claims stem from wildfires that erupted across Northern California in 2017 and 2018, including the deadly Camp Fire. The Camp Fire destroyed the town of Paradise, killed 85 people, and became the deadliest wildfire in California history. Investigators later determined that PG and E transmission equipment played a role in igniting the blaze.
Earlier fires in 2017 also caused widespread destruction, killing dozens of people and burning thousands of structures. Together, the fires exposed the utility to enormous civil liability, regulatory scrutiny, and criminal investigations, fundamentally altering PG and E’s financial future.
Bankruptcy and Broader Legal Fallout
The wildfire litigation played a central role in PG and E’s decision to file for Chapter 11 bankruptcy protection in 2019. Facing tens of billions of dollars in potential liability, the company sought
court protection to restructure its obligations while continuing to operate California’s largest electric utility system.
PG and E ultimately emerged from bankruptcy in 2020 after agreeing to a 13.5 billion dollar settlement with wildfire victims, insurers, and public entities. That settlement addressed personal injury, wrongful death, and property damage claims, separate from the shareholder litigation now being resolved.
The investor lawsuit was paused during the bankruptcy proceedings and later resumed, leading to the newly announced 100 million dollar agreement.
Settlement Terms and Financial Impact
Under the proposed settlement, PG and E will pay 100 million dollars into a fund for eligible shareholders who purchased the company’s stock during the period covered by the lawsuit. The utility stated that the settlement will be funded without passing costs on to customers through higher electricity rates.
Legal filings indicate that the agreement could prevent years of additional litigation and appeals, offering certainty to both PG and E and its investors. If approved by the court, the settlement would bring closure to one of the last major wildfire-related shareholder disputes facing the company.
Ongoing Wildfire Prevention Efforts
Since the fires, PG and E has invested heavily in wildfire mitigation, including power line hardening, expanded vegetation management, weather monitoring technology, and public safety power shutoffs during extreme fire conditions. The company says these efforts are designed to reduce wildfire risk and rebuild trust with regulators, customers, and investors.
Despite these measures, PG and E continues to face intense oversight from California regulators and lawmakers, who have demanded lasting
improvements to safety culture and infrastructure reliability.
What Comes Next
The settlement now awaits approval from a federal judge, who will evaluate whether the agreement is fair and reasonable for shareholders. If approved, it would mark a significant step toward closing a painful chapter in PG and E’s corporate history.
For the utility, the resolution underscores the lasting financial and legal consequences of wildfire liability, while serving as a cautionary tale for energy companies operating in high-risk regions. For investors, it represents a partial recovery tied to one of the most consequential wildfire disasters ever faced by a U.S. utility company.
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